Nigeria is a thriving hub for startups and if you are looking for the best Business to start with 500k to 1 million, you should be looking at businesses in industries and sectors like agriculture, retail services, logistics, technology, finance, and food. All of these industries offer exceptional environments for business success but it is important to conduct market research, develop an effective business plan, utilize cost-effective marketing strategies, and much more. 

You would also need to ensure legal compliance, focus on effective financial management, optimize operations and logistics, mitigate risks, and learn from success stories to maximize your entrepreneurial journey. Regardless of how much your capital is, you can get a good suggestion for highly profitable businesses to start. I understand the challenges you may face as an aspiring entrepreneur or investor and this article is here to guide you and lead you to profitable investments. 

With determination and the right knowledge, you can build a six-figure business even with your budgetary constraints. Rest assured this guide on businesses to start with 500k to 1 million will point you in the right direction. In this article, I will show you some unscratched business opportunities, the fastest growing businesses in Nigeria, and certain profit projections. 

Business to Start with 500k in Nigeria

If you have 500,000 naira as your starting capital, the following are businesses to start with 500k in Nigeria:

• Dry Cleaning/Laundry Business
• Sales of perfumes
• Food storage business
• Sales of baking products
• Sales of tailoring accessories

Dry Cleaning/Laundry Business

Working class people, students, and career people are too busy to handle their dry cleaning and laundry. Truth is, we cannot have enough dry cleaners and everyone prioritizes professionalism and speed of service delivery above every other thing. To start a dry cleaning business, you need a washing machine, a good pressing iron, and a pressing table. You’ll also need liquid and spray starch, packaging leather, and complimentary cards. 

Depending on the number of people that patronize you, you can make anything from 100,000 to 300,000 monthly as a dry cleaner. 

Sales of Perfumes

People want to smell good as much as they look good. There is so much emphasis on scenting well and making a statement with how you smell. A lot of people invest in perfumes and with the advent of oil perfumes it is now easier to start a perfume selling business and make a lot of money. 

I spoke with a friend that sales perfumes and she said she makes 15,000 naira on every box of perfumes she sells. Imagine selling ten boxes of oil perfume every month, you’d be making 150,000 on your investment monthly. You can start this business from the comfort of your home or give it a structure by having a physical store. 

Usually, success in this kind of a business comes from establishing yourself online. While a physical retail store is good, you should invest on social media too. 

Baking Products 

During a gold rush, people make more money by selling the shovels used in digging up the gold and not by digging the gold. In every street of Nigeria, there’s a bakery or confectionery. As people clamor to become chefs and start their bakery, you can make more money providing the things they need such as baking powder, yeast, vegetable oils, butter, eggs, baking utensils, and so on. 

By having a store set up to meet the needs of bakers, chefs, and bakeries, you will be setting yourself up for a lot of income amidst the confectioneries and small chops rush. You can get a store in the market or a mall for access. 

Food Storage Business

I had some friends go into this business on a small scale with just about 100,000. They made significant profit from storing raw food and selling them when their season of availability passes. Food is something everyone needs and cannot do without. When farmers harvest their food products, it is usually very cheap but as time goes on, when the farm produce becomes scarce, their cost increases considerably. 

For instance, when yam just gets harvested around December – January, you can buy a tuber of yam for 500 naira but when it becomes scarce a small tuber will be sold for 1,000 naira or more. If you are buying in bulk (directly from the farmer), you will be setting yourself for a very cheap bargain. By adopting effective preservation strategies, you can get more than a 50 percent profit on your investment. 

Food storage and preservation works for other farm products such as beans, maize, millet, rice, pepper, sorghum, and other food products. What you need for the business includes a storage location, storage facility, and information on when farmers harvest and when the farm produce becomes scarce. 

Tailoring Accessories

Just like the baking products idea, setting up a tailoring accessories store is like providing shovels for people digging for gold during a gold rush. Tailors are everywhere and there are a lot of apprentices in learning even right now. This means you’d have hundreds of customers patronizing your store when you sell the things they need. 

Tailoring accessories you can sell include measuring tape, threads, needles, sewing machines, sewing machine parts, and much more. 

Business to Start with 600k in Nigeria 

If your starting capital for a business is 600k, the following are businesses you can start with that sum in Nigeria:

• Gaming house
• Jewelry business
• Cereal farming
• Female Salon/Hair Extensions
• Sales of Shoes

Gaming House 

Young people love to play games. My friends spend thousands of naira every week to chill and relax at gaming houses. If your game house has PS3 or PS4, Mortal Kombat, racing games, and a snooker board, you’re good to go. With 600k, you can get a comfortable place, buy three play consoles and three flat screen TVs, get a collection of top-notch games, and a generator. The TVs mustn’t be new but they should be big enough to give players the wide screen effect they love. 

Additionally, the snooker board with good sticks and powder will attract a lot of people too. If you want to make it more interesting, let the gaming house have cushions for relaxation and a mini bar where you sell soft drinks, water, and maybe alcohol. You can organize competitions to attract people to the game house as you start and once you’ve established yourself, everything flows naturally from then on. 

I remember my friends leaving our school to go play games in the city center because there was a very comfortable gaming house there. People can come from distances to patronize your game house if you make it comfortable enough. 

You can charge anything from 500 to 2,000 per game depending on your customer base. 

Jewelry Business

Jewelries are hot cakes today and very priced pieces of fashion. It is a known fact that the jewelry business is capital-intensive but it is not without enormous profit. There is a concept called the “small-scale jewelry business.” In this business model, you can easily buy jewelry, usually gold and silver, from Lagos and Kano and sell them at higher prices. It is even more interesting now that you can order jewelry from outside the country. You can order low-priced but quality jewelry, package them well, and sell them to your customers. 

Your target market would be women and anyone who likes to wear rings, necklaces, leg chains, bracelets, etc. You can get a shop to give yourself some structure and accessibility. I recommend the shop because a lot of people in this business model use social media and a lack of trust makes it difficult to run. 

Farming

Former President Muhammadu Buhari said he wanted Nigeria to focus on farming again as the farming sector was one of the goals of his administration. Even though there was barely a noticeable change in the farming sector, I found out how profitable farming can be if done the right way. It will interest you to know that you do not need to have any experience with farming or know how to hold a cutlass before you can make profit out of it. 

My dad rarely goes to his farm but we reap the dividends of his farming engagements. To run this business model, you can lease a plot of land, get improved seeds from National Root Crops Research Institute (NCRI), and hire labor from locals. You will also need to purchase pesticides and fertilizers. I recommend this business model for people in the North or those close to Gbagbyis. 

Saloon and Hair Extensions

Opening a hair saloon for women is another profitable business to start with 600k in Nigeria. You can get a shop in your estate or mall and start enjoying a fair share from all the money women invest to look good. Additionally, you can sell hair extensions. I know a lady, Keren, who makes 20k, 30k, and even 50k as profit from selling single hair extensions. 

Even if you do not want to push the saloon idea, selling hair extensions is a sure investment that would yield amazing results. You only need a trusted and reliable supplier whose goods are not expensive. Depending on the quality of the products you get, you can decide how much would be your selling price. 

Sales of Shoes

Selling shoes is another lovely business that can yield a substantial income. There are lots of places where you can buy cheap quality shoes and sell them for profit. With the ease of importing, you can buy quality shoes from China and sell them in Nigeria. You can also partner with shoe makers to help you produce shoes at subsidized rates, so you can sell them in your name or brand. 

From Nike sneakers to men’s corporate shoes, sandals, women heels, and flat shoes, there is a huge demand for shoes and you can tap into that market. With quality products, branding, and enough promotion, you can set yourself as a go-to store for quality men and women shoes. 

Business to Start with 700k in Nigeria

You can start the following businesses with 700k in Nigeria:

1. Sale of engine oil
2. Betting shop
3. Poultry farming
4. Sale of phones and phone accessories 
5. Barbing saloon 

Sale of Engine Oil

This business model is one many people shy away from because they believe it is too dirty. Engine oil may get you dirty but the money you get from it can clean you up (LOL). Statistics suggests that the African lubricants market was valued at USD 2.8 billion in 2020 and is expected to reach USD 3.5 billion by 2026 with a CAGR of 3.4 percent during the 2021 – 2026 forecast period. 

You can set up your store around places where there are lots of mechanics or industrial companies that need engine oil. It is also wise to conduct market research to find out which oil people love in the area you are setting up your company so you’re selling what people want. The demand is there and you’d definitely make sales if you can network properly. 

Betting Shop

Today, people have turned betting from being a habit to a source of income thanks to betting platforms such as Bet9ja, Betking, Winners Golden Bet, and other betting platforms. The good thing about putting your money in a betting shop is that you are definitely going to get your money back. People will find you no matter where you are and your chances of making more money will be increased if you are starting your shop in a student environment or somewhere densely populated with young people. 

I recommend working with Bet9ja. They have established themselves as a top-notch betting platform. You can become a Bet9ja agent by following the process and meeting the requirements specified on the agents page. A premise is needed, some computers, and other facilities which would be stated by the Bet9ja field staff. 

Poultry Farming

Many people believe you need to have an exorbitant sum of money to start poultry farming but that’s not entirely true. I am not disputing that you need to have so much money to start a poultry farm, I am saying you can start at any point and scale up as more money comes your way. I handled my dad’s poultry farm so many times and I can tell you assuredly that it is one of the businesses to start with 700k in Nigeria. You can even start it for less than that. 

For your poultry farm, you can decide to rear broilers and sell them for meat or rear layers so you sell their eggs. Both models are sustainable. People consume chicken meat as much as they consume eggs. In my opinion, it is easier to rear broilers than layers. 

This business requires serious networking whether you are rearing broilers or layers. You need people to buy your broilers such as families, abolish selling suya, restaurants, bars, chefs, and so on. On the flip side, you need people to buy your eggs else your investment will go down the drain. 

Sales of Phones and Phone Accessories 

It was in February 2023 that I had an idea of how much these phone sellers make. I and a friend went to buy a phone. As we toured shops in Wuse 2, Abuja, we couldn’t find the exact model of the phone she was looking for. Then I decided to see if I can find the phone on Aliexpress. While I checked Aliexpress, luckily we found a shop that sells the phone and the price tag in the shop was 130,000. Surprisingly, on Aliexpress, the price was less than 80,000. 

That’s a profit of over 40,000 on one phone. It will interest you to know that the screen guards we buy for 1500 naira are bought for something less than 500 naira. What I am trying to point out in essence is that there’s so much money in selling phones than many realize. In places like Abuja, just get a nice shop in a mall, well air-conditioned, with products in beautiful, transparent show glasses, and you will milk people who want new gadgets. 

Many people do not realize that shopping on Aliexpress, especially for gadgets, is very cheap and easy. The only downside to shopping on Aliexpress from Nigeria is the waiting time. Orders take almost 30 days to arrive but I feel it is worth the wait since it is not food you are ordering. 

Barbing Saloon

Before you skip this point on the grounds that you cannot barb – you should know that you don’t need to run the shop. You can easily get good barbers to run the shop for you and submit an agreed sum either weekly or monthly. Opening a barbing saloon requires getting a comfortable place (emphasis on comfortable), getting good clippers, beeps, powder, towels, UV towel warmers, combs, mirrors, nice chairs, and a number of other accessories. 

It is important that the guys you put in the barbing saloon if you do not want to run it yourself are experienced. Men can go any length to get a clean cut. While I was in the university, I would pay a transport of 600 naira to go to a barber in town that charges me only 300 naira for a cut. When I got to Abuja, I noticed there were certain barbing saloons that charged 10,000 to 30,000 naira for a single cut. ]

What these two scenarios point out include: 

1. The demand for skilled barbers 
2. The profitability of barbing

With 700k, you can get two of the basic necessities of a barbing saloon and start up from there. 

Business to Start with 800k in Nigeria

Suppose your budget for starting a business is 800,000 naira, the following are businesses you can try out:

1. Cosmetic shop
2. Sales of suits
3. Open a cyber cafe and business center
4. Open a sports viewing center 
5. Open a car wash 

Cosmetic Shop

A cosmetic shop is a profitable business to start with 800k in Nigeria. Ladies today cannot do without making up and they invest heavily in getting makeup kits. From eyeliners, face primers, liquid foundations, contour, eyeshadow palettes, and much more, you can own a comprehensive store that offers cosmetic products to both makeup artists and individual users with 800k. 

Sales of Suits

If you target a class of men and women, you can make a lot of money from selling suits. Pastors, heads of companies, bankers, name them, there is a huge market for people looking to wear suits. With so many Turkish suppliers selling suits for as low as 40,000 naira, you can buy them and sell them for anything from 80k and above. I know a lot of people that do this. 

Alternatively, if you are a tailor, you can upscale your enterprise to just sewing different types of suits or you could work with tailors to start selling suits. Promoting your business adequately and offering professionalism with swift service delivery is key to excelling in this venture. 

Open a Cyber Cafe/Business Center

There is so much money in running a cyber cafe or business center as we know it. When I wanted to register for NYSC, I discovered that around the Jabi, Utako, and Lugbe axis there was only one NYSC accredited center. For each NYSC registration that center did, they made almost a thousand naira in profit. According to my estimation, NYSC registrations for Batch A Stream 2 corp members would have earned her anything from 150,000 to 250,000 naira. 

Opening your cyber cafe or business center in a business area or somewhere where there’s commercial activity is a plus. Additionally, you can register to provide WAEC, JAMB, NECO, NABTEB, and job recruitment applications. 

Open a Sports Viewing Center

Sports viewing centers remain a viable business opportunity in Nigeria. Nigerians both young and old love to watch football. They support teams playing in Europe and come out en masse to support Nigeria football teams when they play. This business only requires a Dstv decoder, subscription, large televisions, benches for sitting, a generator for power, fans, and any other thing that would make people comfortable while watching football. 

One of the keys to success in this business model is comfortability. If people are comfortable when they come to watch football in your viewing center, you would retain them. Comfortability is achieved through various means such as ensuring the television video quality is excellent, sound is produced well so viewers can hear the commentators, enough fans to keep viewers cool, enough televisions to show more than one match, and good benches. 

Once you are able to achieve comfortability and service delivery, you’ll attract a lot of viewers every day there’s a match. 

Open a Car Wash

Opening a car wash business with an initial investment of 800,000 Naira can lead to a profitable venture. The demand for car washing services remains consistently high, ensuring a steady stream of customers seeking to keep their vehicles clean and well-maintained. With relatively low overhead costs and the potential for recurring revenue, a car wash business offers an attractive investment opportunity. Additionally, scalability allows for expansion by offering additional services such as detailing, waxing, and interior cleaning to cater to a wider range of customer needs.

To start a successful car wash business, it is essential to purchase the necessary equipment and supplies. This includes a high-pressure washer, water storage tanks, quality car wash detergents and cleaning chemicals, as well as cleaning tools and vacuum cleaners for comprehensive cleaning both inside and outside vehicles. Allocating a portion of the budget for signage, marketing materials, and creating an online presence through a professional website and social media profiles helps attract customers.

Attracting customers can be achieved through strategic considerations. Choosing a location with high visibility and easy access, as well as establishing an online presence, enables effective marketing. Offering special discounts, loyalty programs, and exceptional service helps build customer loyalty. Additionally, forming partnerships with local businesses can provide mutual promotional opportunities. It is crucial to obtain the necessary permits and licenses, hire well-trained staff, set competitive pricing, and prioritize maintenance, safety, and environmental responsibility to ensure a successful car wash business. 

Business to Start with 900k in Nigeria

With 900,000 naira, there are several businesses you can start. Some of them include:

1. Block industry
2. Sales of motorcycle spare parts 
3. Gas plant 
4. Rental services
5. Sales of building materials

Block Industry

Starting a block industry can be a lucrative business in Nigeria. With 900,000 naira, you can invest in the necessary equipment, such as a block-making machine, cement mixers, and molds. To begin your block industry, you’ll need a suitable location and raw materials like sand, cement, and gravel. 

It is undeniable that there’s a growing demand for building blocks with ongoing construction projects and the need for housing. If you produce and sell quality cement blocks, you can establish long-term contracts with construction companies, builders, and individuals, becoming their go-to company for cement blocks. 

Sales of Motorcycle Spare Parts

Motorcycles, commonly known as Okadas, are a popular means of transportation in Nigeria, both in urban and rural areas. While 900,000 naira may not look like much, it can help you open a shop to sell motorcycle spare parts and accessories. You can stock a wide range of items, such as tires, tubes, brakes, chains, engine parts, helmets, and protective gear. 

Building relationships with local motorcycle repair shops and riders will help you establish a customer base. Additionally, if you have the experience or can hire someone, you can offer repair and maintenance services to attract more customers and generate additional income.

Gas Plant

Nigeria has a growing demand for clean and efficient cooking fuel, such as liquefied petroleum gas (LPG). With 900,000 naira, you can set up a small-scale gas plant. This would involve purchasing LPG cylinders, regulators, scales, and safety equipment. You would also need to secure a location with proper storage facilities and obtain the necessary licenses and certifications. 

By providing affordable and accessible LPG refilling services, you can cater to households, small businesses, and restaurants looking to switch from traditional cooking fuels. Offering additional services like gas stove sales and repairs can further enhance your revenue stream.

Rental Services

Starting a rental services business can be a versatile option with 900,000 naira. You can invest in various items such as event tents, chairs, tables, canopies, sound systems, projectors, and generators. This business would primarily cater to individuals and organizations hosting events, parties, weddings, and conferences. 

Marketing your rental services through social media, local directories, and partnerships with event planners and venues can help you attract customers. Providing reliable and well-maintained equipment, along with excellent customer service, will contribute to the success and growth of your rental business.

Sales of Building Materials

Nigeria’s booming construction industry presents an opportunity to start a business selling building materials. With your budget, you can establish a store that offers a wide range of construction supplies, including iron rods, roofing materials, plumbing fixtures, electrical fittings, paints, and more. 

Success in this line of business involves networking with construction companies and contractors. Additionally, you can explore partnerships with architects and engineers to become a preferred supplier for their projects. Ensuring competitive pricing, consistent quality, and efficient delivery will help you establish a strong presence in the market.

Business to Start with 1 Million in Nigeria

If your capital for a business is 1 million, the following are some of the profitable businesses you can start for that sum in Nigeria:

1. Open a bar
2. Open an agro store
3. Start logistics with delivery bikes
4. Become a cement distributor
5. Sales of computer accessories 

Open a Bar

Starting a bar is a lucrative investment you can carry out with 1 million in Nigeria. People love to sit at bars, relieve the stress of the day or week, and have a good time with friends over their favorite beers. If you set up a bar that meets the needs of people in terms of versatility of drinks, comfort, and relaxation, you’re setting yourself for success in this line of business. 

You will need to purchase a good freezer, buy drinks at wholesale prices, set up a garden like structure for your bar to save cost, hire two persons to help you with serving customers, and place signage posts for your bar. Furthermore, provision for good music is pivotal if you want to make your bar a go-to destination. Get good speakers or hire them if your budget isn’t enough and play music from Spotify in shuffle mode while your guests enjoy their drinks. 

Open an Agro Store

Farming is a hot cake in Nigeria. Thanks to the advent of technology, farming isn’t as hard and stressful as it used to be. Today, farmers have fertilizers, pesticides, herbicides, and other tools to make farming less burdensome. You can set up an agro store where you provide these supplies for them. If you are venturing into this business, it pays to have an experience in the field so that you can provide consultancy service and advice to your customers. 

Even if you do not have experience, you can hire someone who does. It is your business investment that doesn’t mean you must be an expert in it. 

Start Logistics Services with Delivery Bikes

In Lagos and Abuja, the need for logistics and dispatch services is growing. People have embraced ordering online since the pandemic and vendors need dispatch riders to forward customers’ orders to them. With a budget of 1 million naira, you can get two delivery bikes and still have enough change to complete paper registrations for both. 

Joining yourself to a business that requires your service or handing them to Jumia or Glovo is all you need to start making money with your dispatch bikes. My friend owns a Shawarma shop and I see how much he pays dispatch riders to get his customers’ orders to them. With competence and professionalism, your logistics services will be reckoned with thus increasing patronage. 

Become a Cement Distributor

Selling cement is another profitable venture in Nigeria. A budget of 1 million is enough to become a cement distributor in Nigeria working with any of the top cement brands preferably Dangote and BUA. All you need is a safe place to keep the cement, a registered business name, and startup capital. You’ll need to apply to a cement brand and get accepted before you’d get your consignment of cement. 

Usually, the selling price gives distributors a profit of 1,000 to 1500 naira. There is demand for cement as you know and you can sell more than 10 bags of cement daily depending on the location of your business. As patronage increases, you can do more numbers and earn more money. 

Sales of Computer Accessories

Selling computer accessories is a sure banger of a business opportunity. Tech is doing exceptionally well lately as the world continues to deep dive into the digital age. Almost everyone owns a laptop and they’d want to get an accessory or fix something going wrong with their system. For instance, as I write this article, I need to buy a new mouse because my trackpad is almost giving way.

You can set up a store to sell everything from computers to monitors, UK used laptops, laptop bags, USB drives, memory cards, hard drives, bluetooth keyboards, printers, and so on. 

Steps to Take Before Starting a Business with 500k to 1m in Nigeria

1. Market Research and Analysis:

Market research and analysis is a crucial step to take before starting a business. By conducting market research and analysis, you get an idea what will be profitable for your target audience and based on your budget. Market research and analysis helps entrepreneurs to understand market trends, customer needs, and competition. 

You can conduct market research by organizing surveys, interviews, focus groups, and analyzing industry reports. Additionally, you can analyze market trends by studying consumer behavior, market size, growth potential, and emerging opportunities. By conducting thorough research and analysis, entrepreneurs can make informed decisions about the most viable business options within their budget.

2. Business Plan Development:

Developing a comprehensive business plan is essential for success. It outlines the business concept, target market, competitive analysis, marketing strategies, financial projections, and operational details. Key components include an executive summary, company description, market analysis, product or service offering, marketing and sales strategies, organizational structure, and financial plan. 

A well-crafted business plan tailored to the specific budget range provides a roadmap for success and can attract potential investors or lenders.

3. Legal and Regulatory Requirements:

Most businesses and startups fall short when it comes to this step. To establish a business in Nigeria, entrepreneurs must comply with legal and regulatory requirements. This includes business registration with the Corporate Affairs Commission (CAC), obtaining necessary licenses and permits from relevant authorities, such as trade licenses and health permits. Understanding tax obligations and ensuring compliance with tax regulations is also crucial. Consulting with legal professionals or business advisors can help navigate these requirements effectively.

4. Financial Management and Budget Allocation:

Effective financial management is vital when starting a business with a limited budget. Entrepreneurs should create a detailed budget, allocating funds to various aspects such as equipment, inventory, marketing, and operations. Prioritizing essential expenses and exploring cost-saving measures is important. Implementing financial tracking systems and regularly reviewing financial performance helps monitor and control expenses, ensuring optimal use of the available funds.

5. Marketing and Branding Strategies:

Marketing and branding strategies are key to attract customers and build a strong brand identity. Entrepreneurs should leverage cost-effective marketing channels such as social media, email marketing, content creation, and collaborations with influencers or local communities. Emphasizing the unique value proposition, targeting the right audience, and delivering consistent messaging are essential. Branding strategies, including logo design, website development, and cohesive visual elements, help establish a recognizable brand identity even on a limited budget.

6. Operations and Logistics:

Efficient operations and logistics management contribute to business success. Entrepreneurs should consider aspects such as sourcing suppliers or inventory management to ensure the availability of quality products or services. Hiring and training staff, developing standard operating procedures, and optimizing processes for efficiency are crucial. Emphasizing customer service and streamlining logistics to deliver products or services on time can enhance the overall customer experience.

7. Risk Assessment and Mitigation:

Entrepreneurs need to identify potential risks and challenges and develop strategies to mitigate them. This includes conducting a thorough risk assessment, such as analyzing market competition, financial risks, operational challenges, and external factors like regulatory changes or economic fluctuations. Implementing contingency plans, having insurance coverage, and building strong relationships with suppliers or partners can help mitigate risks and minimize the impact of unexpected events on the business.

By following these steps and incorporating strategic planning and execution, entrepreneurs can lay a solid foundation for a successful business within the given budget range.

FAQs

Conclusion

Starting a business with 500k to 1m may feel like a daunting task considering how the cost of things is escalating. However, businesses like the ones mentioned in this article fall within the budget specified and you can run these businesses with ease and make a lot of profit. This boils down to how you follow the steps under starting a business. You’d have to conduct proper market research, develop your business plan, and create a formidable marketing plan to excel in the business world. 

It is quintessential to note that the entrepreneurial journey is windy and not an easy one. Notwithstanding, taking the right steps, networking, and sustaining a desire to learn and implement will set you up for success.